Economics 201, Witte, Thursday, November 10, 2005
I will be in my office (Andersen 311) Monday 3-5 and Tuesday 2-4 to
discuss the exam.
If those don’t work for you, let me know and we’ll
find another time.
No quiz this week, but there was an erroneous Aplia quiz “Money &
Banks II”, which some of you missed.
If you did it, you learned extra,
if you didn’t, no problem it doesn’t count.
The announced quiz was
“Money & the Banking System II”, which hopefully you did and
Krugman & Wells:
Some of the PDF files on line are print protected,
so I had them send us chapters 16-18, and Chapter 19 is printable
Get it at
, then to the
“Krugman/Wells Preview Site”, then to the “Sample Chapters” and
Chapter 19 is at the bottom.
CUMULATIVE Final Exam:
Thursday, December 8
Bring Wildcard, calculator, and an
8.5 by 11 inch note-sheet
which you can put whatever notes you think will be helpful.
will resemble the recent old midterms more than it will the old final
exams I’ve posted.
It’s worth 45% of your grade, but big
improvements will be noted in this calculation.
Business Bootcamp Sunday.
Details on Courses/Blackboard in
Money has three classical roles:
Transactions, assets, unit of
account (but this last one isn’t so important)
By changing the monetary base and thereby the money supply, the
Fed changes the amount of transactions balances, and the supply of
credit for investment purposes
Real short run macroeconomic effects
Long run effect:
Likely only inflation.
i = r +
Radford & Sweeneys:
Transactions and store of value demand for
The Phillips Curve, Recessionary and Inflationary Gaps
Inflationary and Recessionary Gaps – Equilibria away from
potential GDP, Full Employment.